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The cryptocurrency rally has slowed over the past few days, with Bitcoin (BTC) recording its first weekly decline since Donald Trump’s win in the Presidential election in early November. Bitcoin fell nearly 10% for the week ending Dec. 22 after hitting an all-time high on Dec. 16.
The recent decline came after the Federal Reserve gave a hawkish outlook for rate cuts in 2025. However, the cryptocurrency still has a lot of potential and is poised to rally in the near term as expectations continue to build on Trump’s crypto-friendly policies.
Investing in Bitcoin-centric stocks like NVIDIA Corporation NVDA, BlackRock BLK, Shopify Inc. SHOP and Robinhood Markets, Inc. HOOD would thus be a smart choice. These stocks have a strong growth potential for 2025. Each of these stocks has seen positive earnings estimate revision in the past 60 days and carries a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Impressive 2024 for Bitcoin
Bitcoin started 2024 on a high after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in January. The cryptocurrency hit an all-time high for the first time this year in March, with its price hitting $73,750. However, the rally fizzled out soon after that as the Federal Reserve delayed its rate cuts and even the halving event in April failed to lift the cryptocurrency.
The rally returned in September after the Federal Reserve slashed interest rates for the first time in over four years with a jumbo 50-basis-point cut. The rally gathered further steam after Trump’s election victory, jumping nearly 50% in a month, to hit an all-time high of $106,533 on Dec. 22.
However, Bitcoin has declined slightly over the past few sessions after the Federal Reserve last week said that it sees a maximum of two rate cuts next year. Bitcoin was trading over $95,320 on Sunday evening but is still in a comfortable space.
Rally to Continue in the Upcoming Year
The recent comments from the Federal Reserve have somewhat unsettled Bitcoin and the broader market but investors are still holding a lot of hope from the incoming President, who is known for his crypto-friendly environment.
The President-elect has already appointed several pro-crypto people to key cabinet and regulatory positions. During his campaign, Trump promised to transform the United States into the "crypto capital of the world," revealing plans to create a strategic Bitcoin reserve and choose regulators supportive of digital assets.